Overview: Are Short-Term Rentals Allowed in Amherst, VA?

Yes, short-term rentals are explicitly allowed in Amherst, VA, but with significant restrictions and requirements. According to the Town of Amherst's regulations, short-term rentals are permitted in commercial zoned areas as well as R-1 and R-2 residential districts, but only after obtaining a Special Use Permit and receiving final approval from the Town Council.

The town defines a short-term rental as "any rental less than 30 days" and has established a comprehensive regulatory framework that includes application processes, management requirements, and enforcement mechanisms.

How to Start a Short-Term Rental Business in Amherst, VA

Starting a short-term rental business in Amherst requires following a multi-step regulatory process:

Step 1: Understand Zoning Requirements

• Commercial zones: STRs are permitted
• R-1 and R-2 residential districts: STRs are allowed only with a Special Use Permit
• All districts: Must apply for Special Use Permit regardless of zone

Step 2: Special Use Permit Application Process

1. Submit Application: Available at Town Hall or online at www.amherstva.gov
2. Pay Application Fee: $300 fee associated with the application and review process
3. Attend Public Hearings: The process requires:
   • Advertisement for public hearing
   • Review and discussion at Planning Commission meeting
   • Final approval process at Town Council meeting

Step 3: Required Documentation and Plans

• Management Plan (detailed requirements below)
• Floor Plans designating all rooms
• Site Plan showing parking arrangements and property boundaries
• Resident Owner Signature acknowledging understanding of all terms and conditions

Step 4: Business License Requirements

• Obtain business license before making any accommodations
• Report as "retail" category under Section 58.1-3706 of Virginia Code
• Annual renewal required by May 1st

Required Documents, Permits, Licenses, and Guidelines

Special Use Permit Requirements

• Application Form (available from Town Hall or website)
• Application Fee: $300
• Management Plan (see detailed requirements below)
• Public Hearing Process: Must be advertised and reviewed through Planning Commission and Council

Business License Requirements

• License Type: "Retail" category classification
• Annual Fee: Based on gross receipts from STR operations
• Renewal Deadline: May 1st annually
• Reporting Requirements: Annual review to maintain permit validity

Management Plan Requirements

Your management plan must include:

• Floor Plans designating all rooms
• Site Plan for parking arrangements and property boundaries
• Emergency Contact Information for responsible party
• Occupancy Requirements and limitations
• Business Insurance Policy (general liability and property damage)
• Fire Safety Equipment Documentation: Proof of fire extinguishers and appropriate detectors
• Guest Registry: Digital or paper format to track guests

Safety and Compliance Documentation

• Fire Extinguisher Documentation and maintenance records
• Smoke Detector Documentation and maintenance records
• Proof of Insurance for general liability and property damage
• Emergency Contact Information posted prominently

Specific Regulations for Short-Term Rentals

Operational Restrictions

• Parking: No renter/guest on-street parking allowed
• Events: No outside events after 10:00 PM
• Sound: No amplified sound outside the property
• Occupancy Limits:
  • Overnight occupancy cannot exceed advertised number of guests or beds
  • If no "guest" number is advertised, occupancy cannot exceed number of furnished bed spaces
• Age Requirement: No rental shall be made to guests under 21 years of age
• Trash Management: Provider responsible for refuse removal and ensuring receptacles are emptied during weekly pickup

Tax Obligations

Transient Occupancy Tax (Lodging Tax):

• Filing Deadline: 20th of each month for the previous month
• Payment Responsibility: Owner is ultimately responsible for collection and remittance
• Third-Party Platforms: If using Airbnb, VRBO, etc., they remit payments but owner must submit tax documentation
• Multiple Filing Scenarios: Different reporting requirements based on whether you use intermediaries

Enforcement and Penalties

• Permit Revocation: Council can remove Special Use Permit for violations
• Three-Strike Rule: 3 violations result in permit revocation for 2 years
• Expansion Violations: Expanding STR without new permit subjects owner to fines
• Unpermitted Operations: Operating without a permit results in fines
• Compliance Failure: Failure to renew business license or comply with requirements results in cease and desist orders

Additional Requirements

• Contact Information: Must provide point-of-contact information to Town and keep current
• Annual Review: Yearly review process to determine continued eligibility
• Neighborhood Considerations: Additional restrictions may be imposed based on neighborhood concerns or unique conditions

State-Level Regulations (Virginia)

Business Classification

• Virginia Code Section 58.1-3706 classifies short-term rentals under the "retail sale" category for business license purposes
• Must be reported as retail business for tax purposes

Transient Occupancy Tax

• Virginia localities are authorized to charge transient occupancy tax
• Amherst requires monthly filing and remittance
• Ultimate responsibility lies with property owner, even when using third-party platforms

Contact Information

Town of Amherst

• Physical Address: 174 S. Main Street, Amherst, VA 24521
• Mailing Address: P.O. Box 280, Amherst, VA 24521
• Phone: (434) 946-7885
• Fax: (434) 946-2087
• Website: www.amherstva.gov

Planning Commission and Town Council

• Application Process: Applications available at Town Hall
• Meeting Schedule: Planning Commission meetings (check website for current schedule)
• Public Hearings: Required for all Special Use Permit applications

Source Links

• Amherst Planning Commission Meeting Agenda: https://amherstva.gov/wp-content/uploads/general/PC-Agenda-231206.pdf
• Amherst County Code (Site Plan Review): https://amherstva.gov/wp-content/uploads/general/PC-Agenda-231206.pdf (same document)
• Facebook Post Reference: https://www.facebook.com/NewEraProgress/posts/a-special-exception-permit-for-a-short-term-rental-of-dwelling-at-146-garrett-fa/1373344178128382/

Important Notes for Investors:

• The regulatory framework is comprehensive and requires significant compliance effort
• Annual renewals and reviews create ongoing administrative requirements
• Enforcement is actively pursued with meaningful penalties
• The $300 application fee plus business license costs should be factored into startup expenses
• Given the restrictions on occupancy, parking, and events, STR properties must be carefully managed to avoid violations